Student Car Insurance

A big part of the excitement of going off to university is the sense of independence it brings. This sense is greatly enhanced by having your own transportation. Trains and buses get you where you want to go, of course. But, having a car? Now, that is independence. The downside is that you may be expected to pay all car-related expenses "independently".

The cost of purchasing the car is just the beginning. Then you have to put petrol in it, maintain it - and insure it. Fortunately, there are insurance options geared towards students and young drivers. Even without an insurance policy specifically tailored for students, it is possible to keep the price down by employing cost-saving strategies.

The first is to consider very carefully what type of car you buy. A new car is more expensive to insure than a used one, but the cost can vary widely within either category depending on the insurance group to which your car belongs. These insurance groups are determined by a number of factors, including the vehicle's performance, average repair costs and repair time, the car's value and security features. The Association of British Insurers can rank your car based on information you supply. The Association also offers pertinent advice for keeping the cost of insurance low for everyone, not just students.

The first piece of advice is to shop around. Get quotes from various insurers by using an insurance broker or a comparison website. The Automobile Associations, the AA or RAC, will do this for you, finding the best policy at the best price.

A secure car often attracts discounts on the price of the premium. An approved alarm or immobiliser, and an overnight garage reduce the risk of theft, and thus lower premiums.

Cars worth less than £5,000 are not required to have comprehensive insurance; a lower level of cover such as Third Party Fire & Theft is acceptable. While you are running a greater risk, there is nothing like a lack of accident coverage to make you a more careful driver. Raising the level of your voluntary excess (what Americans call a deductible) can also mean a lower premium.

Students and other young drivers should consider taking the advanced driving test known as Pass Plus since some insurers offer lower premiums to drivers who complete the course. The last piece of advice from the Association of British Insurers: if you are able to pay the premium in one go, you will avoid instalment charges.

Price is not the only consideration when selecting a student car insurance policy. Different companies will offer incentives and suggestions for lowering your premiums as a way to persuade you to choose them. Look especially for good no claims discounts. Obviously, if you don't make a claim, you expect the discount, but you should not lose the discount if you are in an accident that is not your fault, even if the other driver is uninsured. Nor should you be expected to pay the regular excess.

In short, student car insurance can be affordable, if you take the time to do some research and carefully evaluate your options.